VuMee inks $2MN credit facility for video-sharing platform development
Michelle Clancy | 05-12-2012
Start-up video-sharing site and penny-stock-to-watch VuMee has snagged a $2 million credit facility with Coventry Capital LLC. The funding will be utilised to help build VuMee's sales efforts, marketing strategy, celebrity development, mobile and desktop development as well as its social following, the company said.
"VuMee continues to invest in and enhance its website VuMee.com, mobile apps, celebrity development and user experience while continuing to grow viewership," it said in a statement.
"We are extremely pleased that we have secured additional funding for our continued growth," said Michael Spiegel, CEO. "This funding will allow us to expand our business development efforts and invest more resources into our mobile and desktop video platforms."
VuMee specialises in catering to celebrities looking to viral-video themselves out to the world, but other user-generated videos are on the site as well. The company added, "VuMee acts as a unique platform to hear from consumers, build visual relationships and connect users with their favorite celebrities and brands through both mobile and PC platforms."
Despite the hegemony of YouTube in the user-generated content space, usage and membership has been rising "rapidly," the company said, as the platform has continued to invest in more user-friendly features, particularly full integration of Facebook and Twitter sharing, along with a complete overhaul of its user interface. Visitors now spend an average of more than four minutes on VuMee.com per visit, and the company said that sign-ups are tracking upwards.
In October it announced that it saw more than 2.2 million page views and 530,000 unique visitors to its website, VuMee.com, in September 2012. The newfound fan-base has now opened up the door to more advertising opportunities, it noted, so it has outfitted it sdesktop and mobile platforms with pre-roll, post-roll and banner advertisements. VuMee also uses push technology to help connect companies, brands and celebrities to targeted consumer segments.
Mobile, in particular, will be a focus going forward thanks to the new cash injection. The company noted that mobile continues to be a sweet spot for digital advertising according to a report issued by the Interactive Advertising Bureau. For the first half of 2012, revenue in the category increased 95% to $1.2 billion, nearly eclipsing total mobile advertising revenue for the entire year of 2011 at $1.6 billion. Digital advertising revenue across the board for the year through June totaled $17 billion, a 14 percent increase from $14.9 billion in 2011, the bureau reported.